BILL NUMBER: SB 281	CHAPTERED  10/10/99

	CHAPTER   902
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999
	AMENDED IN ASSEMBLY   JUNE 17, 1999
	AMENDED IN SENATE   APRIL 8, 1999

INTRODUCED BY   Senators Chesbro and Johannessen
   (Coauthor:  Assembly Member Wiggins)

                        FEBRUARY 2, 1999

   An act to amend Sections 1023, 1047, 1048, and 1049 of, and to
repeal Section 1023.5 of, the Military and Veterans Code, relating to
veterans.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 281, Chesbro.  Veterans:  California veterans' homes:  Morale,
Welfare, and Recreation Fund.
   (1) Existing law requires that a portion of the money received
from the lease of real property for a golf course on the grounds of
the Veterans Home of California, Yountville, commencing at the end of
the first 12 months after the date the department no longer operates
a driving range or that property, upon appropriation by the
Legislature, be made available annually to the administrator for
special projects benefiting that veterans home.
   This bill would repeal those provisions.
   (2) Existing law requires each California veterans' home to be
under the management and control of the Department of Veterans
Affairs and, subject to the policies adopted by the California
Veterans Board and the Secretary of Veterans Affairs, to be
administered by an administrator.  The administrator is required to
maintain a post fund that includes any profits from operations of the
Veterans' Home Exchange and post fund operations, revenue derived
from the issuance of prisoner-of-war special license plates, all
donations to the fund, interest earned on invested funds, funds
derived from the estates of deceased members, and certain other
moneys and property derived from the home, except that the moneys and
properties received by the home from estate assets located outside
the home in excess of $200,000 in any one calendar year are required
to be paid into the General Fund.
   This bill instead would require the administrator to maintain a
Morale, Welfare, and Recreation Fund to include any funds derived
from golf course green fees and range ball fees, in addition to the
moneys and property included in the post fund under existing law.
   The bill would delete the requirement that moneys and properties
received by the home from estate assets located outside the home in
excess of $200,000 in any one calendar year be paid into the General
Fund and, instead, would require those moneys and properties to be
included in the Morale, Welfare, and Recreation Fund, regardless of
amount.
   (3) Existing law requires the post fund to be used, at the
discretion of the administrator and subject to the approval of the
secretary, to provide for the general welfare of the home and its
veterans, including, but not limited to, providing for operations of
the Veterans' Home Exchange, motion picture theater, library, and
band, and to pay for newspapers, chapel expenses, welfare and
entertainment expenses, sport activities, celebrations, and any
necessary insurance to protect property of the fund or the Veterans'
Home Exchange, and any other activity for the benefit of the home or
its members.
   This bill, instead, would delete the requirement that the post
fund be used for the benefit of the home and would limit the use of
that money, which would be deposited in the Morale, Welfare, and
Recreation Fund, for the morale, welfare, and recreation of the
veterans, as specified.  The bill also would prohibit expenditures
from that fund for certain purposes that are unrelated to the morale,
welfare, and recreation of the veterans or that may be funded from
other sources.  The bill would provide that appropriations from the
General Fund may not be reduced for the purpose of, or to have the
effect of, requiring increased expenditures from the Morale, Welfare,
and Recreation Fund for those specified purposes.
   This bill would require the administrator to prepare and submit to
the secretary and to certain committees of the Legislature, on or
before August 20 of each year, a report detailing funds received in
the Morale, Welfare, and Recreation Fund and transmitted to the
Controller and a report detailing expenditures from that fund.
   The bill would also make a conforming change.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1023 of the Military and Veterans Code is
amended to read:
   1023.  (a) The department may sue and be sued in any of the courts
of this state.  All property held by the department for the home
shall be held in trust for the state and for the use and benefit of
the home.  The administrator shall manage the home and administer its
affairs, and, subject to the direction of the director, adopt rules
and regulations for the government of the home in conformity as
nearly as possible to the rules and regulations of the United States
Veterans' Administration for their facilities.
   (b) The Director of General Services may lease or let any real
property held by the department for the home, and not needed for any
direct or immediate purpose of the home, to any entity or person upon
terms and conditions determined to be in the best interests of the
home.  In any leasing or letting, primary consideration shall be
given to the use of real property for agricultural purposes, and
except as provided in Section 1048, all money received in connection
therein shall be deposited in the General Fund to the credit of, and
shall augment the current appropriation for the support of, the home.

  SEC. 2.  Section 1023.5 of the Military and Veterans Code is
repealed.
  SEC. 3.  Section 1047 of the Military and Veterans Code is amended
to read:
   1047.  (a) The administrator shall maintain a Morale, Welfare, and
Recreation Fund that shall be used, at the discretion of the
administrator and subject to the approval of the secretary, to
provide for the general welfare of the veterans, including, but not
limited to, providing for operations of the Veterans' Home Exchange,
hobby shop, motion picture theater, library, band, and any other
function that is operated for the morale, welfare, and recreation of
the veterans, and to pay for newspapers, chapel expenses, welfare and
entertainment expenses, sport activities, celebrations, and any
other activity that is for the  morale, welfare, and recreation of
the veterans.
   (b) Money in the Morale, Welfare, and Recreation Fund may not be
expended for any of the following:
   (1) Medical treatments or any other treatment for which
reimbursement is available from other sources.
   (2) Maintenance of the physical plant of the home.
   (3) Any function, operation, or activity that is not related to
the morale, welfare, or recreation of the veterans.
   (4) Any function, operation, or activity for which an alternate
source of funding is available.
   (c) Appropriations from the General Fund for the purposes
described in paragraphs (1) and (5) of subdivision (b) may not be
reduced for the purpose of, or to have the effect of, requiring
increased expenditures from the Morale, Welfare, and Recreation Fund
for those described purposes.
   (d) The administrator shall prepare an itemized report that is
organized by category and accounts for all expenditures made from the
Morale, Welfare, and Recreation Fund during the previous fiscal year
and shall submit the report on or before August 20 of each year to
all of the following:
   (1) The secretary.
   (2) The fiscal committees of the Assembly and the Senate.
   (3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over veterans' affairs.
  SEC. 2.  Section 1048 of the Military and Veterans Code is amended
to read:
   1048.  (a) The Moral, Welfare, and Recreation Fund shall include
proceeds from operations of the Veterans' Home Exchange, revenue
derived from the issuance of prisoner-of-war special license plates
pursuant to Section 5101.5 of the Vehicle Code, all funds derived
from golf course green fees and range ball fees, all donations to the
fund, interest earned on invested funds, funds derived from the
estates of deceased members, and any other moneys or property
described in this chapter, including, but not limited to, moneys and
properties received by the home from estate assets located outside
the home, regardless of amount.
   (b) The administrator shall prepare an itemized report that is
organized by category and accounts for all funds deposited into the
Morale, Welfare, and Recreation Fund and transmitted to the
Controller under Section 1047 during the previous fiscal year and
shall submit the report on or before August 20 of each year to all of
the following:
   (1) The secretary.
   (2) The fiscal committees of the Assembly and the Senate.
   (3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over veterans' affairs.
  SEC. 3.  Section 1049 of the Military and Veterans Code is amended
to read:
   1049.  Moneys in the Morale, Welfare, and Recreation Fund
maintained under subdivision (a) of Section 1047 may be used to
establish or operate a Veterans' Home Exchange that may conduct any
lawful endeavor which, in the judgment of the administrator, will
benefit the veterans, except as prohibited under subdivision (b) of
Section 1047.  The administrator may establish the Veterans' Home
Exchange to operate at a profit.
